JZL Capital: Pioneer on Oasis Network Privacy
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1. Privacy market analysis: Why does Web 3.0 need privacy functions?
1. One of the biggest features of the blockchain is anonymity, but anonymity does not mean privacy. The user's transaction data and operation process are completely open and transparent. Those who are interested can judge the account by tracking the transaction records. Once the wallet is locked Putting a label on it will never get rid of it, which will always have a grudge against large or traditional users entering the decentralized field.
2. Public data is often used maliciously, such as sandwich transactions, trailing transactions, MEV attacks, etc., making the blockchain ecology a technology-oriented ecology.
4. Privacy is not a native feature of the blockchain, but it should be a prerequisite for realizing Web 3.0. Data personalization is only possible through privacy, or partial privacy.
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2. Privacy Market Analysis: Currently Commonly Used Privacy Computing Technologies
1. Zero-knowledge proof. Representative projects: ZCash, Aleo, Manta Network
Peer-to-peer privacy transactions
Data is not disclosed to third parties, but can be recognized by third parties
It can be completely confidential but the application level is low, such as financial transfer
2. Multi-party secure computing: PlatOn
The complexity is higher, and multiple encryption methods such as homomorphic encryption (HE), zero-knowledge proof, and verifiable computing are superimposed. Can be applied to more layers
The development cost is high, and the product is difficult to iterate
3. Trusted Computing Technology (TEE-Trusted Execution Environment): Oasis Labs, Secret, Phala Network
The problem is that we rely too much on hardware technology, and we need unconditional trust in hardware
4. The privacy track will be favored by institutions from 2021 to 2022. According to incomplete statistics, since 2021, at least dozens of blockchain projects focusing on privacy protection have emerged and received mainstream investment from a16z, Sequoia, etc. Institutional support. The number of major financings has reached 15, with a financing amount of more than US$500 million. The most well-known ones are Aleo, a private transaction network led by SoftBank and Tiger Global with US$228 million, and Nym, a private transaction network participated by Polychain and a16z. The next thing I will introduce is Oasis Network, a veteran privacy track project established in 2018 and launched on the mainnet in 2020.
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3. Introduction to Oasis Network
1. Oasis Network was launched in November 2020. It is a Layer 1 decentralized blockchain network with privacy protection features and scalability. Oasis Network is also one of the blockchains in the Cosmos ecosystem. It uses the Cosmos Tendermint Consensus consensus mechanism as a verification method, but it has not yet connected to the Cosmos cross-chain protocol IBC, so it has no direct connection with the Cosmos ecosystem.
As a mature privacy encryption technology, TEE is currently widely used in chip technology (intel, AMD), such as fingerprint unlocking on mobile phones, face recognition, etc. There is a separate black box inside the chip, called Hardware Secure Enclaves, which has independent storage, cache and encrypted memory, which can be completely independent from the operating system or detection network strategy, and the data calculated inside the black box It's all encrypted.
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4. Layered architecture design
2. Consensus Layer：
1. Oasis is a privacy-oriented layer 1 PoS blockchain network. For better expansion and security, Oasis uses a layered design architecture, namely the consensus layer Consensus Layer and the application layer (or computing layer) ParaTime Layer.
The consensus layer is built using the Cosmos SDK, using the Tendermint BFT consensus protocol developed by Cosmos.
Limited by Tendermint BFT, decentralization is sacrificed while improving expansion and security. Currently, there are only 110 verification nodes and cannot be increased.
3. ParaTime Layer：
The verification nodes of the consensus layer are block producing nodes, and the source of income is Gas Fee. Ordinary users can choose to become delegates to pledge as nodes to obtain mining rewards.
The ParaTime Layer is the key to the operation of the Oasis Network. This layer allows multiple different runtimes (Runtime, called ParaTime in Oasis) to work simultaneously.
The ParaTime Layer is distributed with many computing nodes (ParaTime Node). The computing nodes are special nodes that support the TEE trusted execution environment and are used to encrypt and calculate dapps with privacy requirements.
According to different functions, the ParaTime layer differentiates the following ParaTimes that can be processed simultaneously: The Parcel Paratime. The Oasis-ETH ParaTime (also called Emerald ParaTime) and Cipher ParaTime
The Parcel Paratime: The currently launched function is the Parcel SDK test version. Developers can use the Parcel SDK to develop programs and deploy them in Parcel Paratime. Computing nodes that support the TEE trusted execution environment perform calculations. When the calculation results are generated, Oasis The calculation result will be encrypted before it leaves the secure area. Only simple data extraction, storage, and calculation can be done, and smart contracts cannot be deployed.
Application example: Nebula Genomics is a C-end-oriented genetic testing solution. They build a privacy protection framework through Oasis’ Parcel Paratime. On the one hand, users can retain the ownership of their genetic data; on the other hand, Nebula can Run analytics on data to protect user privacy. Another example is application scenarios such as obtaining credit evaluation through Parcel Paratime to borrow money to buy a house.
Oasis-ETH ParaTime (Emerald Paratime): This is an EVM-compatible ParaTime designed to support dapps ported from Ethereum to the Oasis network, or to build dapps compatible with Ethereum on it. Currently the first DEX on Oasis - Yuzu Dex is a dex built with Oasis-ETH. It will be launched in January 2022, and it has obtained a TVL of more than 100 million US dollars within 12 hours of its launch.
Cipher ParaTime: The privacy computing ParaTime that supports smart contract deployment can be regarded as an upgraded version of Parcel ParaTime. The mainnet has been launched in October 2021.
Data tokenization: Users can decide the application scenarios or restrictions of their own data, not only can master their own private data, but also gain benefits by sharing private data.
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5. Founder and community
1. The founder of Oasis Network is the well-known Professor Dawn (Xiaodong) Song, who is currently a professor of computer science at UC Berkeley. He has served for more than 10 years. He graduated from Tsinghua University, then studied at Carnegie Mellon and obtained a doctorate in CS at UC Berkeley. The professional fields are deep learning, network security and blockchain technology, known as the "Godmother of Internet Security". In 2018, she published a paper titled "Ekiden: A Privacy-Protecting, Reliable and High-Efficiency Smart Contract Execution Platform" and established Oasis Labs, and began to develop its main network Oasis Network.
2. In the fall of 2021, she will also teach DeFi-related CS courses at UC Berkeley. She is also known as the Chinese female scientist closest to the Turing Award. Most of its team members are also from UC Berkeley.
4. It is worth noting that the proportion of universities in the Oasis Network community is the largest among all blockchain projects, and excellent new blockchain workers continue to enrich the establishment of the entire Oasis Network community.
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6. Market Operation and Token Economy
1. Thanks to Dawn Song's high reputation in the industry, Oasis Foundation has excellent performance in cooperation. Notable collaborations include:
Oasis labs is collaborating with Meta AI, formally known as Facebook AI. The content of their cooperation is to create a secure and encrypted AI computing platform.
Provided data privacy solutions for Nebula Genomics, BMW. Partnering with Binance to launch Cryptosafe against hacking incidents.
The University Program is launched in major universities, and if you apply to enter the program, you may get the opportunity to conduct research with Dawn or do research under the team of other professors
In November 2021, more institutional investors will launch a USD 200 million Ecosystem Fund to build multiple ecological projects such as Defi, NFT, metaverse, data tokenization, and data DAO. Cooperative institutions include Dragonfly, Jump Capital, Pantera, NGC, Hashed, etc.
2. In 2022, Oasis Network released their focus of work:
Promote Emerald to launch more DeFi applications
Release WebAssembly (EWASM) smart contract module and privacy Defi application on Cipher Mainnet
In the ParaTime layer, common data tokenization scenarios are provided for network upgrades to improve the performance of the consensus layer and the paratime layer
Launch of hackathons and new projects to continue supporting the community
3. Token economy:
Oasis’ native token is called ROSE, and the upper limit of tokens is 10 billion. When the main network starts, the circulation is about 1.5 billion. The purpose of the token belongs to Utility Token, and its biggest function is Gas Fee payment, followed by common functions such as staking and voting governance. The token distribution model and vesting schedule are as follows:
It can be seen that in terms of token distribution, the core team and investors occupy a large part of the token distribution, and the market circulation mainly comes from staking rewards and early circulation tokens.
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7. Summary
The team members are from top universities such as University of Chicago, Columbia University, University of Washington, Carnegie Mellon University, University of Illinois at Urbana-Champaign and Nanyang Technological University, and have served Morgan Stanley, Barclays Bank, Ernst & Young, KPMG, HNA Group , Bank of America and other well-known international companies.
References:
https://www.oasislabs.com/distributed-network
https://people.eecs.berkeley.edu/~dawnsong/
https://messari.io/asset/oasis-labs
about Us
JZL Capital is a professional organization registered overseas, focusing on blockchain ecological research and investment. The founder has rich experience in the industry. He has served as the CEO and executive director of many overseas listed companies, and has led and participated in eToro's global investment.
The team members are from top universities such as University of Chicago, Columbia University, University of Washington, Carnegie Mellon University, University of Illinois at Urbana-Champaign and Nanyang Technological University, and have served Morgan Stanley, Barclays Bank, Ernst & Young, KPMG, HNA Group , Bank of America and other well-known international companies.
Website www.jzlcapital.xyz
Twitter @jzlcapital
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If there are obvious facts, understandings or data errors in the above content, welcome to give us feedback, and we will correct the report.
Note: JZL Capital currently has a Cosmos ecological theme fund. The opinions in this article may have a high degree of interest correlation with the company. This report should not be used as investment advice.
